Inflation preview up 0.94% in October, the highest increase for October since 1995

Section: Economic Statistics | Carmen Nery

October 23, 2020 09h00 AM | Last Updated: October 23, 2020 04h42 PM

With a 4.83% high, beef drives October IPCA-15 up - Photo: Helena Pontes/IBGE News Agency

The Extended National Consumer Price Index 15 (IPCA-15), released today (10/23) by the IBGE, was 0.94% in October, the highest result for the month since 1995. In the year, the inflation preview accumulated increase of 2.31% and in 12 months, it reached 3.52%.

The prices of food and beverages influenced the indicator to its highest increase (2.24%) among the groups and the biggest impact (0.45 percentage points). The highest contribution (13 p.p) was from beef (4.83%), the fifth increase in a row. The index was also affected by soybean oil (22.34%), rice (18.48%), tomato (14.25%) and long life milk (4.26%). On the other hand, the prices of onion (-9.95%) and potatoes (-4.39%) decreased.

The Transportation group had the second biggest change in October (1.34%), leveraged by airfares, which increased 39.90% and contributed with 0.13 pp to the IPCA-15 this month. All areas increased, changing between 21.66% in Porto Alegre and 49.71% in Curitiba. The second biggest impact (0.04 pp) was from gasoline (0.85%), the fourth consecutive high, though less intense than that of the previous month (3.19%).

Also in Transportation, the prices of voluntary vehicle insurance rose 2.46%, after seven consecutive months of decrease. Only interstate bus (-2.73%) and vehicular gas (-1.36%) had negative changes. Household Articles rose 1.41%, boosting in relation to September (0.79%), with increase in all items, especially in furniture (1.75%) and TV sets, sound systems and computers (1.68%).

After decreasing 0.27% in September, the Wearing apparel group increased 0.84%, influenced by men’s wearing apparel (1.31%) and children’s wearing apparel (1.07%). The prices of women’s wearing apparel decreased 0.10%.Jewelry and costume jewelry increased 1.73%, accumulating highs of 10.68% in the year.

In Housing (0.40%), the biggest impact (0.02 pp) was from bottled gas, an increase of 2.07%. Piped gas retreated 0.17%; water and sewage rose 0.16%, electricity rose 0.11%.In October, the IPCA-15 increased in every surveyed locality. The biggest result was from the metropolitan area of Fortaleza (1.35%), affected by the prices of rice (23.02%), meat (4.79%) and gasoline (2.78%). The lowest change was from the metropolitan area of Salvador (0.43%), due to the fall in the prices of gasoline (-5.87%).